26th Jun 2014 11:52
LONDON (Alliance News) - Premier African Minerals Ltd Thursday said its pretax loss widened in 2013 due to higher administrative costs and after a review of its operations led to impairments in the carrying amounts of its assets.
The AIM-traded, multi-commodity natural resource company with mineral projects located in western and southern Africa, said its pretax loss widened to USD4.8 million from USD2.1 million the previous year.
Premier African Minerals is yet to produce any revenues as it develops a major tungsten operation in Zimbabwe, but said its administrative expenses increased during the period and it was hit by a USD2.1 million impairment charge after a review of its operations reduced the carrying amounts of its property, plant and equipment.
The company recently sold its stake in the major Danakil potash project in Ethiopia for cash and shares, clearing it of a USD2.5 million net bridging loan, giving it two million shares in Circum Minerals Ltd worth USD1.4 million and a further cash payment of USD1 million on each of July 15, September and November 2014 and January 2015.
It said it will now focus on advancing its other assets once it has received the cash from Circum.
Premier African Minerals shares were down 6.2% to 0.844 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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